HIGH prices

Discussion in 'Pesticide & Herbicide Application' started by rcreech, Feb 20, 2009.

  1. rcreech

    rcreech Sponsor
    Male, from OHIO
    Posts: 6,057

    This is my 5th year in business...and I have always been very competitive on pricing (I think anyway).

    THIS year I have been questioned by several people on being on the high side.

    I just try and sell them on our quality of prouduct and service. Sometimes it works and sometimes it doesn't!

    I only had a 5% increase...so I am trying to figure out why they I am getting some questions now!

    Do you think it is due to the fact that everyone is paying closer attention to what they are paying?

    I used to know TG and Scotts pricing...but now with all the fert prices and economy I am not sure.

    Does anyone know what the competition is doing?

    Anyone else being questioned on their price increase?

    I guess I don't care as I have yet to negotiate a price...and probably won't unless I start losing some business!
  2. grassguy_

    grassguy_ LawnSite Senior Member
    from Ohio
    Posts: 633

    Hey RCreech! Think most ppl are starting to see that $50 this year means more to them than $50 last year. that i guess goes without saying, lol,. Not really a reflection of a price increase as it is the reality of a recession.
  3. Runner

    Runner LawnSite Fanatic
    Posts: 13,494

    Not only that, but even though they have it now,...I think alot of people are looking forward, and being carefiul...not knowing what is going to happen. We have alot of people who are losing all their health care - including those who are already retired and it is being stolen from them by cooks that call themselves automobile corporations, and many who are on the verge off losing their jobs altogether - reGARDless of where they work and what they do. What is more than that, there are alot of people who have money, but even many of THEM are watching what they are doing, because of the amounts they have in stocks, bonds, cd's, and everything else that is suffering. I don't know... but if it's any consolation, I think we are going to see alot of our indirect costs not only not rise, but many of them will literally go down. Our product prices for instance,...as demand drops, are going to drop. Fuel may very well do the same. I know it won't be in direct proportion with our decline in gross, but it may very well help cushion the blow.
  4. rcreech

    rcreech Sponsor
    Male, from OHIO
    Posts: 6,057

    I'm not super scared right now...but I am definitly scared a little.

    Are you guys scared or just nervous?

    Glad I got some cushion built up over the winter...or I would be totally scared!!!!!

    Guess we will see!

    Glad I am a small fish in a big pond!

    How will the big boys (TG's etc) make it through this kind of thing? Their market share can pretty much only go in one direction!

    As "little guys" we can gain market share pretty easy, but it is still scary!
  5. philk17088

    philk17088 LawnSite Fanatic
    Posts: 17,386

    I give up trying to figure it out. Cancels are actually running less than previous years. More people want to prepay also.
  6. Ric

    Ric LawnSite Fanatic
    Posts: 11,956


    I am in a retirement area where most retired people have a secure income. But I am starting to get the price is too high from a few customers also. BTW I have not raised prices in the last two years. People are running scared and like you I haven't felt it but I am Darn scared.
  7. ted putnam

    ted putnam LawnSite Platinum Member
    Posts: 4,539

    I agree that many of our input costs will decline. I am seeing evidence of that already. The price of Top Choice has dropped substantialy. However, I'm seeing signs of inflation as well. I have a business credit card that I have used extensively to buy and pay for supplies. I always pay on time and always more than minimum payments an often multiple times the minimum. I got a notice the other day that the terms of my agreement had changed...out of the blue! I went from 9.5% to 15.95%... No real reason given, just "economic factors". My blood is still boiling...
  8. MStine315

    MStine315 LawnSite Senior Member
    Posts: 789

    I've had more cancels this year than ever before. I normally lose fewer than 5 customers out of 250 residentials for the whole season. This year I've already lost 9 and the letter went out about 10 days ago. Same here Rodney-5% increase. I'm second guessing myself for raising at all, but I've always had the theory I'd rather lose a few and have larger profit margins, but it still hurts. I won't feel real bad as long as these cancels that say it's for financial reasons are just that, but if they give me a sob story and I see another companies' flag...

    As far as scared or nervous, just a little nervous right now, not scared...yet. And as far as the increase, not one person has even mentioned that. It's like they just flat want out. On the other hand, my wife and I are scrutinizing our bills too. Called the cable company yesterday and cut back on some services. Good old trickle down economics.
  9. Runner

    Runner LawnSite Fanatic
    Posts: 13,494

    Yeah,..I am cutting back on the cable services and stuff, too. I may even have to cancel my membership to Lawnsite, too... I don't want to,...but if these prices still keep going up, I may have to. I liked it better when it was free site and there was no charge to be a member.
  10. rcreech

    rcreech Sponsor
    Male, from OHIO
    Posts: 6,057

    I would sell a kidney to stay on this site! :laugh:

    Now Direct TV.....I could give it up anyday! Don't watch it anyway!

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